Media Agency Forecasts Stronger Ad Spending

Media agency ZenithOptimedia has raised its advertising forecast for 2010, and the biggest improvement comes in North America.

In its previous forecast, released in April, ZenithOptimedia called for a 1.5% decrease in North American Advertising Expenditures. In a report issued Monday, the agency is calling for 1.3% growth.

"This is because consumer confidence and spending has recovered quite strongly in the U.S., despite persistent unemployment," the agency said.

ZenithOptimedia also noted that network TV had a very health first quarter in the U. S. and that that was followed by 6% to 10% rate increases in the upfront market for commercial time during the 2010-2011 season.

In the U.S., ZenithOptimedia sees expenditures on television increasing 6.4% to $177.7 million in 2010. Spending on TV is expected to hits $187.4 million in 2011 and $197.6 million in 2012.

Total U.S. ad spending is expected to be $440.9 million in 2010, with mobile advertising and social media showing the biggest growth.